EOS has gained much popularity in recent times due to its meteoric rise in value and its favorable Weiss rating. Currently, it is the 16th largest cryptocurrency with a market cap of $2,589,280,616 and a volume of $2,463,143,433. Let us now take an in-depth look into EOS and find out how exactly it works.
What is EOS?
EOS is a cryptocurrency running on the EOS.IO blockchain network that is used to support wide-reaching applications. This blockchain network functions as an operating system with no central information storage center. Thus, blockchain users can get access to the required tools in order to develop decentralized applications.
When you buy or sell EOS, you don’t need to pay a transaction fee. In the EOS network, inflation is substituted for transaction fees, and the individuals running the network on a periodic basis are rewarded with EOS coins. This coin lets consumers and developers produce the required resources for operating apps on the platform.
In order to run an app, you require a central processing unit as well as memory space and time. So, developers need to use the EOS coins for purchasing server time and accessing the blockchain network.
How does EOS work?
The EOS network features an authentication system where developers can create accounts for individuals while assigning a permission level for each. Using this network, businesses can let people on the network access their database. Conversely, different organizations can extract data from the platform and keep them stored on a local drive, thus keeping the data from the blockchain as long as they want.
EOS operates on a delegated proof of stake consensus, and every day 21 individuals are selected to be transaction validators. These individuals are responsible for producing blocks on the basis of how many votes they get. As mentioned before, there is no transaction fee for the production of these blocks, but the delegates receive EOS tokens as a reward.
This system has its benefits. First of all, if the performance of the block producers is not up to the mark, the members of the community can vote them out. Furthermore, since the number of block producers is low, it does not take much time to validate the transactions.
Since every day a new group of validators is chosen, there are no chances of problems occurring in block production. The inflation rate for EOS supply stands at 5%, and out of this, 1% returns to the delegates at year-end. This acts as an incentive for the work they put in producing the blocks and allows them to continue their production.
The DPoS system offers a large capacity for scalability. Thus, the transaction speed is maintained through the small group of validators, regardless of the increasing size of the EOS community.
Features of EOS
The different features of EOS are as follows:
- Scalability: EOC can conduct a large number of transactions each second, which means it has high scalability. This is achieved via inter blockchain communication and delegated proof of stake.
- Inter Blockchain Communication: This feature makes it possible for several blockchains to communicate and work together to deal with bigger transaction loads. Thus, when a transaction occurs in a chain, it can be availed from another. There is no limit on the number of transactions that can be handled by EOS.
- Simple to use: EOS transactions have no fees, and the platform has means for recovering passwords, which makes it simple to use, even for a layman. The addresses can be comprehended quite easily, and the transactions are quite fast, so you can work with the blockchain with no issues at all.
- Cloud Storage: The cloud storage feature allows application developers to create their programs and deploy them effortlessly. Developers have all they need, and they can concentrate on the features of the apps without worrying about the hardware. EOS also has an analytics feature that provides developers with crucial information that lets them enhance their apps.
- Governance: The individuals producing the blocks can regulate the transactions that are authenticated on the network. They can also make modifications to the source code or the EOS system. This allows for system issues to be fixed quickly.
History of EOS
The EOS network was launched in mid-2017 and was in operation till the middle of 2018. With a running time of 350 days, it became the most long-lasting ICO ever. Thus, many individuals got the opportunity to interact with this network and purchase EOS tokens.
The network managed to raise revenues worth a billion dollars, and after completion, it released 700 million coins. Block.one is the name of the company that created the platform. It is known for its involvement in other cryptocurrency and blockchain projects.
How to buy EOS?
In order to buy EOS, you need to follow these steps:
- Select an EOS wallet: In order to buy EOS coins, you first need to choose a digital wallet. Since there are no official wallets for EOS, you have to depend on other sources. For this purpose, you can choose hardware, mobile, web, or desktop wallets.
- Visit an exchange: After setting up your digital wallet, you have to visit exchanges like Binance, Kraken, ShapeShift, etc., in order to buy the coins.
- Transfer the coins to your wallet: After purchasing the required number of coins from an exchange, you need to transfer them to a secure wallet. You shouldn’t leave the coins in an exchange as hackers can get access to them.
Now you have a clear idea regarding what EOS is and how it functions, you can start investing in it. Currently, the long-term prospect of EOS seems to be quite good. But, it does come with its fair share of risks, so you should study the market thoroughly and keep up with the trends while dealing with EOS coins.